Adidas Sohaib Ali

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Adidas AG Comments on FY 2009 GuidanceWednesday, 4 Nov 2009 01:31am EST

Adidas AG announced that it has commented its fiscal year 2009 guidance. The Company expects sales to decline at a low- to mid-single-digit rate on a currency-neutral basis in fiscal year 2009. Furthermore, adidas AG expects for fiscal year 2009 earnings pershare to decrease and gross margin is forecasted to decline to a level of between 45.0% and 45.5%. Full year diluted earnings pershare are expected to reach a level between EUR 1.15 and EUR 1.30. According to Reuters Estimates, analysts on average areexpecting the Company to report revenue of EUR 10.525 billion, net profit of EUR 253.60 million and earnings per share of EUR 1.26for the fiscal year 2009.

2009


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2010

Last 3 Years Financial Performance


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Type Public (AG, FWB: ADS)Founded 1924 (Registered in 1949)Founder(s) Adolf Dassler


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Headquarters Herzogenaurach ,Germany.Key people Herbert Hainer (CEO), Erich Stammminger (CEO, Adidas brand).Indusrty Clothing & consumer goods manufacturing.Products Footwear, accessories, sportswear, sports equipments.Revenue 10.799 billion (2008)

Operating income 1.070 billion (2008)Profit 642 million (2008)Employees 38,980 (2008)

ADIDAS AG is a German sports apparel manufacturer and part of the ADIDASGroup which consists of REEBOK Sportswear Company, TAYLORMADE-ADIDAS Golf Company, and ROCKPORT. Besides sports footwear, the company

also produces other products such as bags, shirts and other sports and clothingrelated goods. The company is the largest sportswear manufacturer in the world.

The companys clothing and shoes designs typically feature three parallel bars, andthe same motif is incorporated into Adidass current official logo. The companyrevenue for 2008 was listed at 10.7999 billion and the 2007 figure was listed at

10.299billion, or about US$15.6 billion.

Adidas-Salomon product are sold in over 160 countries in the world .

Industry

The sporting goods industry consists of three segments: Athletic footwear, Appareland Equipment. Athletic footwear makes up 33% of the sporting goods industry,Apparel 50% and Equipment makes up the remaining market share. The threelargest markets for athletic equipment are the US at 50% of the market share,Western Europe at 25% of the market share and Japan at 10% market share.


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ADIDAS GROUPAdidas

72% group salesReebok

20% group salesTaylor Made

8% group sales

Sport Performance(80% of adidas sales)

The guiding principle of theadidas Sport PerformanceDivision is to equip all athletesto achieve their impossible.Adidas Sport Performance

brings its passion for greatproducts to athletes in all sportsand mainly focuses on four keycategories globally: football,running, training and basketball.

Sport Style(20% of adidas sales)

The Sports Style Division is thehome of Originals defined asauthentic sportswear, theFashion Group, which is thefuture of sportswear, and StyleEssentials, the fresh sport

inspired label made accessiblefor style adopting youth.Together they offer consumers

products from street fashion tohigh fashion, all uniquelyinspired and linked to sport.

Reebok(80% of Reebok sales)

Inspired by its roots in sports andwomens fitness, Reebok isglobal brand that is committed todeveloping innovative productswhich will allow Reebok to own

Womens Fitness, challenge theMens sport category and reviveits Classics heritage.

Reebok CCM Hockey(9% of Reebok sales)

Reebok CCM Hockey is one ofthe worlds largest designers,manufacturers and marketers ofhockey equipment and apparelwith two of the worlds mostrecognized hockey brand names:Reebok Hockey and CCMHockey.

Rockport(11% of Reebok sales)

Building on nearly four decadesof engineering expertise and acommitment to innovation,Rockport designs and marketsdress, casual and outdoorfootwear as well as apparel andaccessories that fuse dynamictechnology and modern style.

Taylor Made(70% of Taylor Made adidas

golf sales)Taylor Made is a leader in theindustry and the number onemetal wood supplier. It focuseson consumers who seek the

most innovative, performance-enhancing golf equipmentavailable, includingtechnologically superior drivers,fairway woods, irons, puttersand balls.

Adidas Golf(30% of Taylor Made adidas

golf sales)Adidas Golf targets active,serious, athletic-minded golferswho understand that the righttechnologies can dramatically

improve the performance ofgolf footwear and apparel.

Ashworth(Acquired in November 2008)

Ashworth is a leading designerof mens and womens golf-inspired lifestyle sportsweardistributed internationally ingolf pro shops and reports aswell as upscale department andspecialty stores.


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GROUP STRATEGY

Our goal as a group is to lead the sporting goods industry with brands built on apassion for sports and a sporting lifestyle. In everything we do, we are focused on

strengthening and developing our brands to maximize the Groups operational andfinancial performance and create shareholder value.

1. Performance as core Group value.

2. Leveraging opportunities across our brand portfolio.

3. Leading position in markets worldwide.

4. Customizing distribution.


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Current Position

TIME

As per the data available Adidas product are in the growth stage. In 2006 the

footwear production was 200 million pairs, where as it increased by 1 million pairsin 2007 and in 2008 with a surprising increase of 21 million pairs.

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www.adidas.comwww.adidas-group.comhttp://adidas-group.corporate-publication.com

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Adidas Sohaib Ali